Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor houre allowed Actual quantity purchaned in October Actual direet labor hours Actual quantity used in October Direct labor rate variance $ 3.00 per lb. $8.20 per hour $ 2.80 per lb. 1,040,000 lba. 21,000 1,295,000 lbs. 17,000 1,070,000 lbs. $6, 120 F Required: 1. Calculate the total cost of purchases for October. 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficlency variance for October. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 Req 5 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity varlance based on quantity used. (Indicate the effect of each variance by selecting "E" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 2. Direct Materials Price Variance 3. Material Quantity Variance

Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor houre allowed Actual quantity purchaned in October Actual direet labor hours Actual quantity used in October Direct labor rate variance $ 3.00 per lb. $8.20 per hour $ 2.80 per lb. 1,040,000 lba. 21,000 1,295,000 lbs. 17,000 1,070,000 lbs. $6, 120 F Required: 1. Calculate the total cost of purchases for October. 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity variance based on quantity used. 4. Compute the standard direct labor rate for October. 5. Compute the direct labor efficlency variance for October. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 Req 5 2. Compute the direct materials price variance based on quantity purchased. 3. Calculate the direct materials quantity varlance based on quantity used. (Indicate the effect of each variance by selecting "E" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 2. Direct Materials Price Variance 3. Material Quantity Variance

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...

See similar textbooks

Similar questions

Question Content Area The following data relate to direct labor costs for the current period: Line Item Description Value Standard costs 7,000 hours at $11.80 Actual costs 6,300 hours at $10.80 The direct labor rate variance is a. $14,560 unfavorable b. $6,300 favorable c. $14,560 favorable d. $8,260 favorable
Actual quantity of direct materials purchased Standard price of direct materials Material price variance Material quantity variance The actual price per pound of direct materials purchased in June was: Multiple Choice O O O $4.10 per pound $4.15 per pound $3.85 per pound 25,000 pounds $ 4.00 per pound $ 2,500 Unfavorable $1,000 Favorable
Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,940 units, but its actual level of activity was 5,890 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Multiple Choice Fixed element per month $258 U $0 $0 0 37,400 26,800 $ 64,200 $ 178,095 $ 33,510 $ 51,800 $ 47,775 $ 33,670 Manufacturing overhead Selling and administrative expenses The activity variance for selling and administrative expenses in October would be closest to: Variable element per unit $ 30.30 $ 6.00 9.00 1.70 1.20 $ 17.90
Standard cost ———6,000 hrs at 12.00 Actual costs 7,500 hrs at 11.40
Variance Problem Standard Quantity Standard Cost Standard price $1.75 per hr $11.50 per hr $5.00 per hr per unit $7.00 $13.80 $6.00 per unit Direct Materials Direct Labor Variable Overhead 4 1.2 1.2 Manufacturing overhead is applied using direct labor hours as the base. During the month of July, XYZ company had the following information available about production: a. 9,000 units were produced b. 37,000 lbs of raw materials were purchased at a cost of $62,900 c. There was no beginning inventory and no ending iInventory of raw materials d. 10,500 hours of direct labor were used during the month at a cost of $119,175 e. Variable overhead cost in July totaled $57,750 Compute the following and verify the total variance for each component of product cost: 1. Material price variance, Material quantity variance, and Total material variance 2. Labor rate variance, Labor efficiency variance, and Total labor variance 3. Variable Overhead spending variance, Variable Overhead efficiency variance,…
Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
29
Question Content Area Myers Corporation has the following data related to direct materials costs for November: actual cost for 4, 690 pounds of material at $5.30 and standard cost for 4, 410 pounds of material at $6.30 per pound. The direct materials price variance is a. $1,764 favorable b. $4,690 favorable c. $1,764 unfavorable d. $4,690 unfavorable
Milar Corporation makes a product with the following standard costs: Standard Quantity or Standard Price or Hours Rate $ 4.00 per pound 4.5 pounds 0.8 hours Direct materials Direct labor $21.00 per hour Variable overhead 0.8 hours $ 9.50 per hour In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 14,040 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is:
Direct Material Direct Labor Standard Cost Data per 1 Unit Quantity Price 3 lbs $2.00/lb 2 hrs $4.00/hr Actual Data: Units produced Material purchase & usage Direct Labor Show all computations. 25 100 lbs at $2.20 per lb 30 hrs; total cost $129 a) Compute price variance, quantity variance, direct material variance b) Compute rate variance, efficiency variance, direct labor variance
i do not understand how to solve this problem
Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour Direct materials 3.5 grams Direct labor 0.7 hours Variable overhead 0.7 hours The company reported the following results concerning this product in July. Actual output 3,000 units Raw materials used in production 11,370 grams Actual direct labor-hours 1,910 hours Purchases of raw materials 12,100 grams Actual price of raw materials purchased $ 1.20 per gram $ 11.40 per hour $ 2.10 per hour Actual direct labor rate Actual variable overhead rate The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for July is: